News: Peter Molyneux's baby will work with Lionhead's other project as well.

After this year's E3, we know that Project Natal is Peter Molyneux's baby. The head of Lionhead demoed the controllerless motion-sensing peripheral at the show and is hard at work on Milo, a game that involves interacting with a young boy.

Now, GamesIndustry.biz is reporting that Lionhead's other big project, Fable III, will also feature Natal support.

The news was broken at the British Academy of Film and Television Arts' annual Video Game Lecture, where Molyneux also talked about some of the games that have inspired him as a developer including Dune 2, Super Mario 64 and World of Warcraft.